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Accounting Policies of Sicagen India Ltd. Company

Mar 31, 2015

1. Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2. Change in Accounting Policies

During the current year, the method of calculating depreciation has been changed to straight line method uniformly for all divisions other than Agri division. However there is no material impact for the mentioned divisions.

3. Fixed Assets

Leasehold Land is capitalized and the amount is not amortized. Intangible assets are capitalized and the amount is amortized.

4. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

5. Depreciation

Depreciation is provided at the rates prescribed under Schedule II of the Companies Act, 2013 and useful life of the assets on the following methods.

a) Assets of All divisions are calculated at straight Line method.

b) Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost..

c) Improvements on leasehold premises are depreciated over the tenure of the lease.

d) Assets whose cost does not exceed Rs.5000 are fully depreciated.

6. Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

7. Inventories

a) Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services; based on customers' preferences for Commercial Vehicles Division.

b) Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads for Beta, Specialty Chemicals and Moving Weighted Average Cost for Goodwill Governor Services.

c) Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d) Loose tools are valued after writing off a certain percentage on cost only in Goodwill Engineering Works.

8. Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

9. Excise Duty

a) Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b) Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

10. Revenue Recognition

a) Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b) Sales are net of discount and sales tax and are recognized at the point of dispatch of goods.

c) Service Income

(i) Income is recognized when billed on completion of services.

(ii) Income from boat building is recognized as and when it is ready for delivery.

11. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

12. Retirement Benefits

a) Retirement benefits in the form of Provident Fund/ Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b) Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c) Actuarial gains/losses are charged to Profit and Loss Account.

13. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

14. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17.

15. Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961.Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2014

1. Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2. Change in Accounting Policies

During the current year, the method of valuation of inventory has been changed from first in first out to Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services. However there is no material impact for the mentioned divisions.

3. Fixed Assets

Leasehold Land is capitalized and the amount is not amortized. Intangible assets are capitalized and the amount is amortized.

4. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

5. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods.

a) Assets of Building Materials Division, Governor Services, Engineering Division, Speciality Chemicals at written down value method

b) Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c) Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d) Improvements on leasehold premises are depreciated over the tenure of the lease.

e) Assets whose cost does not exceed Rs.5000 are fully depreciated.

6. Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

7. Inventories

a) Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on Moving Weighted Average Cost for Building Materials Division & Goodwill Governor Services; based on customers'' preferences for Commercial Vehicles Division.

b) Finished goods and work in progress are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads for Beta, Specialty Chemicals and Moving Weighted Average Cost for Goodwill Governor Services.

c) Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d) Loose tools are valued after writing off a certain percentage on cost only in Goodwill Engineering Works.

8. Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets'' recoverable value with its carrying amount in the books. In case carrying amounts exceeds recoverable value, impairment losses are provided for.

9. Excise Duty

a) Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b) Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

10. Revenue Recognition

a. Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b. Sales are net of discount and sales tax and are recognized at the point of dispatch of goods.

c. Service Income

1) Income is recognized when billed on completion of services.

2) Income from boat building is recognized as and when it is ready for delivery.

11. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

12. Retirement Benefits

a) Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b) Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c) Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d) Actuarial gains/losses are charged to Profit and Loss Account.

13. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

14. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard - 17.

15. Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2013

1. Basis of Preparation

The Financial Statements relate to Sicagen India Limited. These Financial Statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2. Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3. Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods.

a). Assets of Building Materials Division, Governor Services, Engineering Division, Speciality Chemicals at written down value method.

b). Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c). Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d). Improvements on leasehold premises are depreciated over the tenure of the lease.

e). Assets whose cost does not exceed Rs.5000 are fully depreciated.

5. Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6. Inventories

a). Trading Stock, Stores and Spares, Raw materials, Packing Materials are valued at cost, computed on first-in- first-out basis. ''

b). Finished Goods and Work in Process are valued at the lower of cost and estimated Net Realizable Value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads.

c). Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d). Loose tools are valued after writing off a certain percentage on cost.

7. Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. In case carrying amounts exceeds recoverable value, impairment losses are provided for.

8. Excise Duty

a). CENVAT Credit on materials purchased for production are taken into account at the time of purchase and CENVAT Credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The CENVAT Credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized CENVAT Credit is carried forward in the books.

b). Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

9. Revenue Recognition

a). Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b). Sales are net of discount and sales tax and is recognized at the point of dispatch of goods.

c). Service Income

1) Income is recognized when billed on completion of services.

2) Income from boat building is recognized as and when it is ready for delivery.

10. Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss Account.

11. Retirement Benefits

a). Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss Account in the year in which the contributions to the respective funds are due.

b). Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c). Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d). Actuarial gains/losses are charged to Profit and Loss Account.

12. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

13. Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17.

14. Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2012

1 Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2 Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3 Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act. 1956 on the following methods.

a Assets of Building Materials Division , Governor Services, Engineering Division, Speciality Chemicals at written down value method, b Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d Improvements on leasehold premises are depreciated over the tenure of the lease, e Assets whose cost does not exceed Rs 5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6 Inventories

a Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on first in first out basis.

b Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads, c Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed, d Loose tools are valued after writing off a certain percentage on cost.

7 Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

8 Excise Duty

a Cenvat Credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The Cenvat Credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized Cenvat credit is carried forward in the books, b Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

9 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Sales are net of discount and sales tax and is recognised at the point of dispatch of goods, c Service Income

1 Income is recognized when billed on completion of services.

2 Income from boat building is recognized as and when it is ready for delivery.

10 Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

11 Retirement Benefits

a Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year, c Obligation for Leave Encashment is recognized in the same manner as Gratuity, d Actuarial gains/losses are charged to Profit and Loss Account.

12 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

13 Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard-17.

14 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed in line with Accounting Standard-24.

15 Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961 Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2011

1 Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2 Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3 Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods.

a Assets of Building Materials Division , Governor Services, Engineering Division, Speciality Chemicals at written down value method.

b Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method.

c Depreciation on certain premises is provided on composite cost where it is not possible to segregate the land cost.

d Improvements on leasehold premises are depreciated over the tenure of the lease. e Assets whose cost does not exceed Rs.5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6 Inventories

a Trading Stock, Stores and Spares, Raw materials, Packing materials are valued at cost, computed on first in first out basis.

b Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads.

c Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed.

d Loose tools are valued after writing off a certain percentage on cost.

7 Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

8 Excise Duty

a Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks

9 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Sales are net of discount and sales tax and is recognised at the point of dispatch of goods. c Service Income

1 Income is recognized when billed on completion of services.

2 Income from boat building is recognized as and when it is ready for delivery.

10 Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the Profit and Loss account.

11 Retirement Benefits

a Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d Actuarial gains/losses are charged to Profit and Loss Account.

12 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

13 Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17

14 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed in line with Accounting Standard -24

15 Provision for Current Tax and Deferred Tax

Provision for Current Ta x is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961.Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.


Mar 31, 2010

1 Basis of Preparation

The financial statements relate to Sicagen India Limited. These financial statements have been prepared under historical cost convention and applicable Mandatory Accounting Standards.

2 Fixed Assets

Leasehold Land is capitalized and the amount is not amortized.

3 Borrowing Costs

Borrowing Costs are capitalized as a part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies-Act. 1956 on the following methods.

a Assets of Building Materials Division, Governor Services, Engineering Division, Speciality Chemicals, Travels

Division at written down value method. b Assets of Vehicle Sales, Beta Drums and Agri Division at straight line method. c Depreciation on certain premises is provided on composite c^t where it is not possible to segregate the land cost.

d Improvements on leasehold premises are depreciated over the tenure of the lease.

e Assets whose cost does not exceed Rs.5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and units are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

Dividends are accounted for when the right to receive the payment is established.

6 Inventories

a Trading Stock. Stores and Spares, Raw materials, Packing materials are valued at cost, computed on first in first out basis.

b Finished goods and work in process are valued at the lower of cost and estimated net realizable value. Cost comprises of materials consumed valued on first in first out basis and direct and indirect overheads. c Work-in-process on ship building contracts reflects proportionate value of inputs and expenses yet to be billed. d Loose tools are valued after writing off a certain percentage on cost.

7 Impairment of Assets

The Company recognizes impairment of assets other than the assets which are specifically excluded under Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India after comparing the assets recoverable value with its carrying amount in the books. Incase carrying amounts exceeds recoverable value, impairment losses are provided for.

8 Excise Duty

a Cenvat credit on materials purchased for production are taken into account at the time of purchase and cenvat credit on purchase of capital items, wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets account. The cenvat credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized cenvat credit is carried forward in the books.

b Excise duty payable on manufactured goods held in the factories is included in the valuation of such stocks.

9 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Sales are net of discount and sales tax and is recognised at the point of dispatch of goods. c Service Income

1 Income is recognized when billed on completion of services.

2 Income from boat building is recognized as and when it is ready for delivery.

3 Expenditure incurred on incomplete contracts is included under "Advances Recoverable".

10 Foreign Currency Transaction

Foreign currency transactions are recorded in the books at rates prevailing on the date of transaction. Current assets and liabilities wherever receivable or payable in foreign currencies are translated at exchange rates prevailing on the Balance Sheet date and the loss or gain arising out of such transaction is adjusted in the profit and loss account.

11 Retirement Benefits

a Retirement benefits in the form of Provident Fund/Superannuation Fund are defined contribution schemes and the contributions are charged to Profit and Loss account in the year in which the contributions to the respective funds are due.

b Employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan. The present value of obligation is provided for on the basis of actuarial valuation using the Projected Unit Credit Method at the end of each financial year.

c Obligation for Leave Encashment is recognized in the same manner as Gratuity.

d Actuarial gains/losses are charged to Profit and Loss Account.

12 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard -29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprises future actions that are recognized as provisions.

13 Segment Reporting

The accounting policies adopted for Segment reporting are in line with Accounting Standard -17.

14 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed in line with Accounting Standard -24.

15 Provision for Current Tax and Deferred Tax

Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961. Deferred taxes are recognized when considered prudent for all timing differences between taxable and accounting income.

 
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